Energy and Economic Assessment of European Transition toward EVs: An Alternative Approach

The European (EU) automotive sector is rapidly transitioning from internal combustion engine vehicles (ICEVs) to electric vehicles (EVs) to reduce greenhouse gas emissions and dependence on fossil fuels. The transition is influenced by factors such as charging infrastructure, electricity price fluctuations, and battery production sustainability. While EVs offer long-term economic and environmental benefits, targeted policies and technological advancements are needed to optimize their impact. This study examines the energy and energy-related economic implications of this ICEV-EV transition using two metrics: the replacement coefficient γ, which measures primary energy (PE) savings, and the economic coefficient β, evaluating energetic financial viability. This research offers policymakers and industry stakeholders valuable insights, supporting data-driven decisions that promote a more sustainable and efficient transportation sector. Findings indicate that EV adoption results in significant primary energy savings and energy cost advantages in most EU countries, particularly in countries with a high share of renewable energy in their electricity mix. The ICEV-EV substitution allows PE and economic factors savings in many EU countries, even considering seasonal variability and battery degradation.